IEA: China Will Usher Golden Age of Gas

IES shows that for promotion of constantly increasing demands, golden age of gas in North America will expand to China in the next 5 years.

New interim report of gas market published IEA points out that the demands for gas in China will be double nearly by 2019. The increasing demands for gas in other areas will slow down. By the end of estimation, global demands for gas will increased by 2.2% per year, descending compared with estimation last year (2.4% per year). Most of increasing demands will be met for LNG and new-built pipe. Private corporations in Australia, Canada and the U.S. will take the lead in expansion of LNG trade. In 2019, trade volume of LNG will be increased by 40%, reaching to 450 billion cubic meters. Half of increasing export of LNG will come from Australia and North America will account for 8% of global LNG trade.

Meanwhile, IEA also comes up with some problems needing to be focused. High price of LNG will weaken market demand. Because some countries who are unwilling or unable to afford high price of LNG will transfer to coal. In the future, only investments on new increasing capacity of LNG and plants must be in place in time, highly rising cost of LNG dropping and carrying out tough govern climate policies so that investments in Asia can turn coal back to gas. Deterioration of air quality is forcing Chinese government to take tough measure to reduce pollution. Accelerating development of gas is main part of solution.

In the future, the demands for gas in China will rise continually and reach 315 billion cubic meters for promotion of power, industry and transportation. The demands will be increased by 90% during predictive period. Although China will still be gas importer, half of newly increasing demands will be satisfied by domestic resources. Among most of resources will be unconventional resources. It is estimated that output of gas in China will be increased from 117 billion cubic meters in 2013 to 193 billion cubic meters in 2019.